A bond with face value $1,000 has a current yield of 6.5% and a coupon rate of

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A bond with face value $1,000 has a current yield of 6.5% and a coupon rate of 8.5%.

a. If interest is paid annually, what is the bond's price?

Related Book For answer-question

Fundamentals Of Corporate Finance

ISBN: 9781264101566

11th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Alan J. Marcus

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Posted Date: Apr 24, 2024 09:21 AM

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A bond with face value $1,000 has a current yield of 6.5% and a coupon rate of

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To calculate the bonds price we can use the formula for the current yield textCurrent Yield fr... View the full answer

Fundamentals Of Corporate Finance

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